IGI Logo

Price trend in March’21

R-22 realisation rose to Rs183 in Mar’21 from Rs157 in Q3FY21 and lows of Rs148 in Nov'20; MDC prices rose 18.8% QoQ to Rs39 in Q4FY21 and fluorspar prices dipped 3.1% QoQ to Rs28, which explains a part of margin expansion for SRF’s chemical business in Q4FY21. BOPET-PTA/MEG spread dipped 2.0% QoQ (up 2.0% YoY) to Rs68 in Q4FY21, but in the month of Mar’21, it was down 5.7% QoQ to Rs66. BOPP-PP spreads have dipped to Rs60 (vs Rs70 in Q3FY21). We see margins shrinking for SRF’s packaging films business, and the impact should be seen in Q1FY22 as it shed inventory gains. Lauryl alcohol prices rose sharply to Rs122 (up 31.8% QoQ) in Q4FY21, which explains Galaxy Surfactants’ revenue growth for Q4FY21. Pigment export volumes have been growing quite impressively, up 27.5% YoY in Q4FY21, and realisations are 4.7% QoQ higher, which should have benefitted Sudarshan Chemical.

SRF Ltd: Packaging films spread hurt from rise in RM in month of Mar’21

* R-22 prices rose 13.4% QoQ (fell 7.6% YoY) to Rs178 in Q4FY21. Fluorspar (acid spar) prices were 3.1% QoQ / 6.0% YoY lower at Rs28, while on MoM basis, fluorspar prices declined 36.6% to Rs24. R-22 spread (to fluorspar and chloroform) was Rs114 vs Rs97 in Q3FY21.

* MDC (methylene chloride) prices rose 18.8% QoQ / 14.3% YoY to Rs39, and methanol and chlorine prices also increased. Our analysis suggests spreads / margins in MDC for SRF should have improved.

* NTCF prices rose 23.2% QoQ / 11.5% YoY to Rs175 in Q4FY21. Caprolactam was up 37.8% QoQ and 21.1% YoY at Rs114. NTCF-caprolactam spread was Rs62 vs Rs60 in Q3FY21. However, SRF has reported better margins (likely on inventory gains on rise in caprolactam prices).

* BOPET prices were up 7.3% QoQ / down 0.2 % YoY at Rs119. PTA prices rose 19.6% QoQ / fell 7.7% YoY to Rs42 while MEG prices were up 31.0% QoQ / 11.1% YoY at Rs44. BOPET-PTA/MEG spread contracted 2.0% QoQ, but expanded 2.0% YoY to Rs68 (vs Rs70 in Q3FY21). However, on MoM basis, spreads were down 5.7% in Mar’21, on faster rise in input cost.

* BOPP prices rose 8.1% QoQ / 15.0% YoY to Rs150 while polypropylene (PP) prices were up 30.8% QoQ / 33.2% YoY at Rs89. BOPP-PP price spread was at Rs60, down 14.0% QoQ / 4.5% YoY. However, on MoM basis, the spread shrunk to Rs49 in Mar’21 from Rs62 in Feb’21 (down 22.0%).

NFIL: R-22 realisation improved while fluorspar prices dip

* R-22 prices rose 13.4% QoQ, but fell 7.6% YoY to Rs178. Fluorspar (acid spar) prices were up 3.1% QoQ and 6.0% YoY to Rs28. R-22 spread (to fluorspar and chloroform) was Rs114 vs Rs97 Q3FY21. NFIL spread was capped due to rise in chloroform prices, which was up 23.9% QoQ, but down 16.7% YoY.

Sudarshan Chemical (SCIL): Organic pigment export volumes up 27.5% YoY

* Organic pigment prices were up 4.7% QoQ / 5.8% YoY to Rs509 in Q4FY21 vs Rs486 in Q3FY21. Organic pigments are inclusive of all colours including CPC. Their export volumes were up 27.5% YoY to 35.2kte in Q4FY21.

* Azo pigment mixture prices rose 4.8% QoQ, but were down 11.7% YoY, to Rs408 vs Rs390 in Q3FY21.

* Inorganic pigment prices were up 4.5% QoQ and 4.9% YoY to Rs100 vs Rs96 in Q3FY21.

Galaxy Surfactants (GSL): Lauryl alcohol prices rose sharply

* Lauryl alcohol prices were Rs122, up 31.8% QoQ and 28.5% YoY, vs Rs93 in Q3FY21.

Vinati Organics

* Ibuprofen prices rose 10.8% QoQ and 16.5% YoY to Rs2,171 (vs Rs1,959 in Q3FY21).

* IBB prices increased by 4.1% QoQ (down 26.4% YoY) to Rs126 vs Rs121 in Q3FY21.

Atul Ltd

* 2,4-D prices rose 6.3% QoQ and 15.5% YoY to Rs165.

* Para-cresol prices increased 4.4% QoQ and declined 22.9% YoY at Rs148.

* Epoxy prices were 33.5% QoQ and 48.2% YoY higher at Rs243.

* Resorcinol prices rose 3.4% QoQ and 2.3% YoY to Rs665.

Gujarat Fluorochemicals

PTFE prices were up 1.4% QoQ and 12.6% YoY to Rs693 (vs Rs684 in Q3FY21). PTFE (to fluorspar) spread was up 2.0% QoQ and up 15.3% YoY to Rs619 (vs Rs607 in Q3FY21).

To Read Complete Report & Disclaimer Click Here

For More ICICI Securities Disclaimer https://www.icicisecurities.com/AboutUs.aspx?About=7

Above views are of the author and not of the website kindly read disclaimer